The standard of living in every place is different. The car insurance rates in Florida depend on the place where you reside. The Sunshine state is the 3rd highest in the nation in terms of car insurance which is 52% more than the national average. Due to high car insurance rates in Florida, it is important to make sure that you get the best deal.
The reason behind it is that Florida has the highest number of uninsured drivers in the USA. As per an IRC survey, around 26.7% of drivers drive without insurance. And when almost 25% of the drivers don’t have insurance, it has an effect on the insurance cost for everyone.
Apart from drivers being uninsured, there are other factors that also make auto insurance rates in Florida expensive. Florida has a population of around 21.3 million. Risky drivers’ percentage is high in Florida. Due to the presence of many universities, the number of students in this State is very high. Also, many drivers are old because there are too many retirement communities. And many drivers are not familiar with the roads, like the tourists who come visiting to admire Florida.
Hence for all these reasons, Florida’s car insurance is much higher than any other state.
People who live in Florida need have to have personal injury protection (PIP) and property damage liability in the following amounts:
- $10,000 property damage liability per accident.
- $10,000 personal injury protection.
And in case of a crash where you are at fault, then as per the Florida Financial Responsibility Law, you need to also pay up to the below amounts:
- $10,000 in bodily injury liability per person.
- $20,000 in bodily injury liability per accident.
It is recommended by experts to buy more and above the bare minimum when you combine all the various parts of your car liability insurance. Additional protection may also be required from comprehensive, collision, and uninsured motorist insurance.
Florida is a no-fault state. Normally when an accident happens, in many states, the driver who has been injured during the car accident will try to get reimbursement from the other driver’s insurance company as that driver was at fault. This doesn’t happen in Florida. All drivers have to carry personal injury protection of a minimum $10,000 in Florida. This is also known as Florida no-fault insurance.
In addition to that, PIP or Personal Injury Protection also takes cares of the below expenses:
- Wages lost where one cannot work because of injuries caused by the crash / accident.
- In-home care hiring costs when one needs help because of their injuries.
- Equipment cost like wheelchair which you need till your recover. And any other that will help you recover.
- Funeral expenses.
PIP also covers injuries of your passengers. Only your car damages are not covered by them. To repair the vehicle you will either go to the at-fault driver’s insurance company or if you were the one responsible for the crash then you would check your own collision coverage.
When someone causes another injury during an accident, they could get sued. Hence it is very important that you buy liability coverage for injuries if you are living in Florida.
Many U.S. states have almost the same requirements. Florida is not an exception. We can help you learn about the best insurance for cars if you are living in Florida. We will give you a lot of options for the best car insurance companies that you could choose from.
Factors that Determine Car Insurance Rates in Florida
Apart from location, several other factors do determine the auto insurance rates in Florida. The car’s age, model and make of the car, safety features and car alarms, how many vehicles you have insured and the coverage amount of the insured vehicles, are some of the main factors.
One’s driving record also plays a vital role. That’s why your insurance quotes will not be the same as your neighbor’s even though both of you may live in the same area at the same time. It is advisable to get insurance quotes from many insurance companies.
Types of Coverage for Auto Insurance Rates in Florida
When it comes to coverage insurance, there are 6 options. These are underinsured and uninsured motorist coverage, collision coverage, personal injury protection, auto liability coverage, medical payments coverage, and comprehensive coverage. Based on the compulsory coverage that you need to have in Florida and the one that you wish to take, the rates of insurance will differ. Since the insurance company has a higher liability if you choose many coverage options, the premium for your auto insurance will be higher.
Always approach a reputed company in Florida itself to insure your car. Check the NAIC or National Association of Insurance Commissioners ratings before you zero down on your insurer. This is of utmost importance. The ratings will help you select your insurer as they are not biased. Sometimes you may read online reviews written by angry car owners against many insurance companies. But you also need to remember that many happy customers will not make an effort to write a review. Hence the NAIC rating needs to be checked rather than depending on the reviews that are online.